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Tesla Inc (NASDAQ:TSLA) Stock Is Soaring. Here’s Why.

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Shares of Tesla Inc. (NASDAQ:TSLA) soared 2.78% as it has gained 11.32 on Friday. Tesla feels the pressure as it wasn’t added to the S&P 500. It has been waiting for this addition since the EV maker disclosed the profit in the second quarter. Tesla Inc has achieved the requirements necessary to make the company eligible for the S&P 500.

Recently, the S&P 500, a stock market index that measures the performance of the stock of 500 larger companies has reorganized the position of various companies but Tesla didn’t get a chance to enter the list of S&P 500 companies. S&P 500 is continuously updating and add growing companies to better exhibit the growth of all the companies.

There are few basic requirements of S&P such as the company must be based in the US, have a market cap of at least $8.2 billion, and many more components that make the company’s eligible for S&P. S&P 500 has disclosed that it would add Teradyne (TER), Catalent (CTLT), and Etsy (ETSY) replacing Kohl’s (KSS), Coty (COTY), and H&R Block (HRB).

Tesla Inc (NASDAQ: TSLA) with a market capitalization of $379.24 billion is more eligible than Disney, Toyota, or Coca-Cola. But this time it missed its chance to enter in S&P 500. Investors were disappointed after seeing the company wasn’t in the S&P 500 index. The market capitalization of Tesla Inc is more than 100 times the smallest company in the S&P 500.

Share of Tesla (NASDAQ: TSLA) rose 2.78% as it gained +11.32 on Friday. It had reported a trading volume of 106.32 million as compared to the average volume of 74.18 million. In the past 52-weeks of trading, this company’s stock fluctuated between the low of $43.67 and a high of $502.49. It had moved up 857.85% from its 52-weeks low and moved down -16.75% from its 52-weeks low. Tesla market capitalization remained high, hitting $379.24 billion at the time of writing.

Previously, Tesla Inc soared as it was speculated that it would join the S&P 500. S&P which is responsible for adding the eligible companies in the index hasn’t disclosed the reason why some companies failed to join the index.  Pierre Ferragu of New Street Research anticipated that Tesla would perform well in the coming days as it is considered to be one of the largest carmakers in the term of sales and output. CFRA has also upgraded Tesla from sell to buy on Friday.

 

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